A brand-new decade is less than a month away, and we’re already seeing a sea change in how—and more importantly, where—Americans want to live.
It turns out, people are deciding it’s just not worth it to work themselves to death to afford homes in the nation’s biggest cities. That’s so 2017! Instead, they’re heading to places where their paychecks will go further and they can enjoy a more laid-back pace of life. In the realtor.com forecast of top markets to watch in 2020, the top 10 are mostly medium-size metros in the South and inland West.
“The cities that we expect to do best in 2020 are not necessarily big, fancy, coastal cities, but secondary markets where the job market is still pretty good but housing is affordable,” says Danielle Hale, chief economist of realtor.com.
Many of these now-scorching metros bounced back from the recession with stronger, more diverse economies; they boast revitalized, walkable downtowns that are a key draw for the next generation of home buyers. With their high affordability, they’re proving to be top-drawer attractions for first-time home-buying millennials and boomers looking toward retirement alike.
In a year when sales are expected to slow by 1.8% nationwide, these top 10 markets are predicted to see a 2.4% increase. Likewise, home prices are projected to rise just 0.8% nationwide but 3.1% in these top metros. (The ranking is based on an analysis of projected home sales and price data.)
The 2010s are in our rear-view mirror. So buckle up, and let’s take a tour of the hottest markets of 2020!
Chattanooga
Median home price: $189,000
Home price change: +3.6%
Sales change: +2%
Situated roughly at the midpoint between Nashville, TN, and Atlanta, Chattanooga offers a convenient—and cheaper—alternative to both U.S. News & World Report, which put Chattanooga at No. 55 on its Best Places to Live list, called it “the comeback kid of Tennessee,” noting that Walter Cronkite once called it “the dirtiest city in America.”
Well, the Scenic City has definitely cleaned up its act, with a $120 million redevelopment of the riverfront which now encompasses apartment buildings, family-friendly restaurants, museums, an amphitheater, and parks. There’s a car-free bridge over the Tennessee River which connects to even more parks. A growing arts district anchored by the new Hunter Museum of American Art has also helped spur development downtown, with a crop of new single-family homes and townhouses.
“Everybody wants to be downtown; that’s the happening thing,” says Vicki Trapp, managing broker at Crye-Leike Real Estate Services, based in downtown Chattanooga.
As a result, prices have exploded. A two-bedroom condo in a low-rise building with river views would start at around $300,000, she says (like this one), with two-story townhouses ringing up higher. That’s usually out of reach for millennials, who tend to rent downtown. Meanwhile, folks can get a three-bedroom, two-bath townhouse or single-family townhouse in the suburbs for about $200,000 (like this one in charming Red Bank).
Situated roughly at the midpoint between Nashville, TN, and Atlanta, Chattanooga offers a convenient—and cheaper—alternative to both
U.S. News & World Report, which put Chattanooga at No. 55 on its Best Places to Live list, called it “the comeback kid of Tennessee,” noting that Walter Cronkite once called it “the dirtiest city in America.”
Well, the Scenic City has definitely cleaned up its act, with a $120 million redevelopment of the riverfront which now encompasses apartment buildings, family-friendly restaurants, museums, an amphitheater, and parks. There’s a car-free bridge over the Tennessee River which connects to even more parks. A growing arts district anchored by the new Hunter Museum of American Art has also helped spur development downtown, with a crop of new single-family homes and townhouses.
“Everybody wants to be downtown; that’s the happening thing,” says Vicki Trapp, managing broker at Crye-Leike Real Estate Services, based in downtown Chattanooga.
As a result, prices have exploded. A two-bedroom condo in a low-rise building with river views would start at around $300,000, she says (like this one), with two-story townhouses ringing up higher. That’s usually out of reach for millennials, who tend to rent downtown. Meanwhile, folks can get a three-bedroom, two-bath townhouse or single-family townhouse in the suburbs for about $200,000 (like this one in charming Red Bank).
As a result, prices have exploded. A two-bedroom condo in a low-rise building with river views would start at around $300,000, she says (like this one), with two-story townhouses ringing up higher. That’s usually out of reach for millennials, who tend to rent downtown. Meanwhile, folks can get a three-bedroom, two-bath townhouse or single-family townhouse in the suburbs for about $200,000 (like this one in charming Red Bank).
Author: Cicely Wedgeworth and Clare Trapasso, realtor.com
